May 6, 2025 14 Important Notices and Safe Harbor Statement This presentation contains forward looking statements, which are not guarantees of future performance, conditions or results, and involve substantial risks and uncertainties, including the current conflict between Russia and Ukraine, conflict in the Middle East, and related changes in base interest rates and significant volatility on our business, portfolio companies, our industry, the global economy, and uncertainty associated with the imposition o ...

Investment Rating - The report assigns a "Buy" rating to several companies including Ain Holdings, Tsumura, Sawai Group Holdings, Litalico, M3, JMDC, Medley, Gakken Holdings, Ship Healthcare Holdings, SMS, and Cyberdyne, while others are rated "Neutral" [29][29][29]. Core Insights - The healthcare sector is expected to show resilience against US tariffs, with a focus on defensive growth stocks that can benefit from system risks and return to growth trajectories [1][2]. - The report emphasizes the importance of stock selection based on defensive characteristics, earnings recovery potential, and contributions to the medical DX market [1][2]. - There is an anticipated recovery in earnings for companies affected by previous revisions to medical reimbursements and COVID-related subsidies, paving the way for a return to normal growth [2][3]. Summary by Relevant Sections Defensive Growth Stocks - Companies like Ain Holdings are expected to benefit from reduced reimbursement impacts and improved business efficiency through dispensing DX [1][1]. - Tsumura is projected to see growth from higher domestic sales volumes and overseas expansion due to deregulation in China [1][1]. - Sawai Group Holdings is anticipated to grow sales and improve margins by providing a stable supply of generics [1][1]. Earnings Recovery - Litalico is expected to return to profitability as disruptions from curriculum changes in the child welfare segment ease [1][1]. - M3 is forecasted to benefit from improved pharmaceutical marketing operations and increased uptake of medical institution DX [1][1]. - JMDC is expected to see higher unit prices and more projects leveraging its competitive advantages [1][1]. Growth Trajectory - Companies like Medley are expected to recover in their HR platform business and see growth in their medical platform business [1][1]. - Ship Healthcare Holdings anticipates steady demand for hospital remodeling projects and growth driven by renewed demand for replacement medical equipment [20][20]. - Cyberdyne is focusing on establishing cybernics centers in Southeast Asia and benefiting from government approvals in Japan [28][28].